Air India orders 100 more Airbus aircraft amid growing competition

In December 2024, Air India, owned by Tata Group, announced its plans to expand its fleet by placing an order for 100 additional Airbus aircraft, specifically consisting of 10 widebody A350 and 90 narrowbody A320 family aircraft. This decision is part of the airline's broader strategy to not only increase its capacity but also to enhance its appeal to passengers. With this latest order, the total number of aircraft ordered from Airbus in 2023 rises to 350, which is significant in the context of the Indian aviation market's growth. The recent purchase is an addition to a previous order that involved 470 aircraft placed with both Airbus and Boeing the prior year. This earlier deal was notable for being the largest simultaneous order made by a commercial carrier, valued at around $70 billion. The airline's aggressive strategy indicates its commitment to modernization and expansion since Tata Group acquired the struggling national carrier in 2022, aiming to revitalize its operations. Tata Sons chairman Natarajan Chandrasekaran highlighted the rationale behind this expansion, suggesting that the airline has a clear vision for its future fleet size beyond the initial acquisition. The additional aircraft are expected to significantly contribute to Air India's ambition of becoming a world-class airline that connects various regions globally. The CEO of Airbus, Guillaume Faury, expressed satisfaction with Air India's continued investment, acknowledging the robust growth in the Indian aviation sector, which presents both opportunities and challenges. This strategic move comes amidst increasing competition within the airline industry, where expanding fleets can result in better service offerings and improved operational efficiency. As a result, Air India aims to reposition itself in a rapidly evolving market and connect India with international destinations more effectively. The implementation of this growth strategy may also involve further investments in staff training, airport infrastructure, and customer service enhancements to support the operational expansion that comes with new aircraft.